,! ,ECONOMICS ( ,W> & ,PEACE ,PEOPLE 3 ,AU?OR 3 ,PAUL ,MATTICK ,TEXT 3 ,S\RCE3 ,DISS5T1 ,VOL4 #c1 ,NO4 #d4 7,FALL #a#i#e#f71 PP4 #c#g#f-#c#h#i4 ,TRANSCRIB$3 BY ,?OMAS ,S*MIDT2 ,ANY CONTRACTION ( ! ,COLD ,W> & 5SU+ ATTEMPTS TO 0NORMALIZE0 9T]NATIONAL RELATIONS RAISE FRE% HOPES = A PEACEFUL SOLUTION ( ! PREVAIL+ IMP]IALI/ ANTAGONISMS4 ,= ! ,WE/]N WORLD ?IS 9VOLVES NEW EVALUATIONS ( ! ,BOL%EVIK REGIMES & !IR AGGRESSIVE ASPIRATIONS1 ,A NEW READ9ESS TO P>LEY ) ! TOTALIT>IAN WORLD IS !N EXPLA9$ BY A *ANGE ( ATTITUDE ON ! P>T ( ! TOTALIT>IAN4 ,! NEW PO/-,/AL9I/ POLICIES W\LD NOT ALONE1 H[EV]1 SUFFICE = A REAL RAPPRO*EM5T BETWE5 ! ,EA/ & ! ,WE/4 ,! ,BOL%EVIK QUE/ = PEACEFUL CO-EXI/5CE1 9T]PRET$ AS WEAKNESS1 C\LD ACTUALLY /R5G!N ,WE/]N ANTI-,BOL%EVIK =EIGN POLICIES4 ,TO MA9TA9 PEACE1 IT MU/ BE G5]ALLY DESIR$2 & SO IT SEEMS TO BE4 ,EV5 ! >MAM5TS RACE SUPPOS$LY HAS NO O!R OBJECT ?AN SAFEGU>D+ ! PEACE ( ! WORLD4 ,! M\NT+ /OCKPILES ( ATOMIC & !RMONUCLE> WEAPONS1 ! :OLE FANTA/IC3 P>APH]NALIA ( MOD]N W>1 >C3 NOT TO BE EMPLOY$ 9 W>4 ,!Y >E !RE TO DET] ! 5EMY FROM MAK+ IT4 ,9 A WAY1 ( C\RSE1 ! ,COLD ,W> ITSELF IS AN 9/RUM5T ( PEACE1 ,AL?\< 9VOLV+ FREQU5T POLICY *ANGES = BO? SIDES1 IT SECURES ! BALANCE ( P[] & PREV5TS MAJOR *ANGES 9 WORLD CONDITIONS1 S9CE EV]Y GA9 = ONE SIDE T5DS TO BE C\NT]M&$ BY ! O!R4 ,?US ATE SU/A9$ ! RELATIVELY /ATIC CONDITIONS ( 0CO-EXI/5CE40 0,LIQUIDATION0 ( ! ,COLD ,W>1 :ILE IT W\LD SIGNAL RELAX$ POLITICAL-MILIT>Y COMPETITION1 W\LD ALSO MEAN AN 9T5SIFICATION ( ECONOMIC /RUGGLES = WORLD SUPREMACY4 ,AT FIR/ GLANCE WE MAY APPE> TO BE 5T]+ A P]IOD ( WORLDWIDE PEACEFUL CAPITAL =MATION4 ,?\< POSSIBLY PO/PON+ W>1 ?IS W\LD NOT NECESS>ILY L[] ! PROBABILITY ( ITS OCCURR5CE1 S9CE CAPITAL EXPANSION1 BY FAVOR+ SOME NATIONS MORE ?AN O!RS1 LEADS ALWAYS TO NEW IMP]IALI/ FRICTIONS4 ,IT WAS NOT ! ,GREAT ,DEPRESSION1 = 9/ANCE1 :I* L$ TO ! SECOND WORLD W> BUT ! CUMULATIVE EFFECT ( ! COMPETITIVE CAPITAL PRODUCTION ?AT PREC$$ IT4 ,?IS CANNOT BE ADMITT$-IT WAS NOT EV5 SE5-BY ALL :O PR(IT$ DUR+ ! J\RNEY TO DEPRESSION2 !Y SIMPLY M>*$ ON 9 ! BELIEF ?AT !IR PROSP]ITY WAS ! SURE/ GU>ANTEE = PROGRESS & PEACE4 ,YET BY SO DO+ !Y CREAT$ A SITUATION ?AT ESCAP$ !IR CONTROL & W> BECAME 09EVITABLE40 ,! W> ITSELF1 H[EV]1 WAS MADE BY SOCIAL MOVEM5TS & IDEAS ?AT HAD GR[N \T ( ! DEPRESSION4 ,& ?\< ! PEOPLE ASSOCIAT$ ) !SE MOVEM5TS & IDEAS TOOK ! RESPONSIBILITY = W> UPON !MSELVES1 IT WAS NOT A SITUATION ( !IR [N MAK+ ?AT 5ABL$ & REQUIR$ !M TO DO SO4 ,9 ?IS S5SE1 W>S1 LIKE CRISES1 >E 9H]5T 9 UNCONTROLL$ CAPITAL ACCUMULATION EV5 ?\< !IR ACTUAL OCCURR5CE 9 TIME IS NOT PR$ICTABLE4 ,JU/ AS A ?REAT5+ CRISIS MAY BE PO/PON$ ?R\< A SUDD5 SPURT1 ( ECONOMIC & SPECULATIVE ACTIVITY SET 9 MOTION BY DISCOV]IES & 9NOVATIONS1 SO W> MAY BE PO/PON$ BY A V>IETY ( CIRCUM/ANCES ?AT ASSURE SOME SORT ( SOCIAL /ABILITY DESPITE ! MO/ 9T5SIVE NATIONAL COMPETITION 9 AN 9T]NATIONAL CAPITAL /RUCTURE :I* IS DETRIM5TAL TO ! G5]AL EXPANSION ( CAPITAL4 ,AN ECONOMIC CRISIS MAY BE 0CONSCI\SLY0 PO/PON$ OR MITIGAT$ BY WAY ( CR$IT 9FLATION & GOV]NM5T 9T]V5TION4 ,?IS MEANS SIMPLY ?AT AN EXI/+ CRISIS IS PREV5T$ FROM RUNN+ ITS C\RSE BY 0NON-CAPITALI/0 ME?ODS ( CONTROL-0NON-CAPITALI/0 9 ! S5SE ?AT !IR P]SI/5T APPLICATION W\LD SL[LY ALT] ! EXI/+ /RUCTURE ( ! CAPITALI/ 0MIX$ ECONOMY0 9 ! DIRECTION ( COMPLETE GOV]NM5T1 CONTROL4 ,I,I ,PRIVATE CAPITAL =MATION1 9VOLV$ 9 ! PRODUCTION ( M>KETABLE GOODS1 F9DS ITS LIMITATION 9 DIM9I%+ M>KET-DEM&4 ,9 ORD] NOT TO R$UCE ! M>KETABILITY ( PRIVATELY-PRODUC$ COMMODITIES /ILL FUR!R1 GOV]NM5T-9DUC$ PRODUCTION IS *ANNEL$ 9TO NON-M>KET FIELDS-! PRODUCTION ( NONCOMPETITIVE PUBLIC WORKS1 >MAM5TS1 SUP]FLUITIES & WA/E4 ,PRODUCTION IS ?US 9CREAS$ BY BO? CAPITAL COMPETITION & GOV]NM5T 9T]V5TION2 ! LATT] C\NT]ACTS ! TR5D T[>D /AGNATION ?AT IS IMPLI$ 9 ! =M]1 ,?IS IS CELEBRAT$ AS ! CAPACITY TO PRODUCE BO? 0GUNS & BUTT]40 ,SU* GOV]NM5T-9DUC$ 0PROSP]ITY0 MAY LA/ = A CONSID]ABLE TIME2 AS LONG1 9 FACT1 AS ! %ILL+ EMPHASIS FROM PRIVATE TO GOV]NM5T-9DUC$ PRODUCTION & VICE V]SA =MS ! COMMON POLICY ( GOV]NM5T & BUS9ESS4 ,IT MAY EV5 DO BETT] ?AN TRADITIONAL1 /RICTLY-M>KET-DET]M9$ CAPITAL EXPANSION4 ,9 ANY CASE1 REC5T HI/ORY HAS DEMON/RAT$ ! POSSIBILITY ( A PROSP]\S DEVELOPM5T ( ! 0MIX$ ECONOMY0 UND] CONDITIONS ( A %R9K+ WORLD-M>KET & 9CREAS$ GOV]NM5T CONTROL4 ,A SECOND LOOK1 H[EV]1 REVEALS ! 0>TIFICIALITY0 ( ?IS PROSP]ITY & ITS 9H]5T T5D5CY TO *ANGE ! V]Y SY/EM TO :I* IT IS CR$IT$4 ,IT IS = ?IS REASON ?AT1 :5EV] POSSIBLE1 GOV]NM5TS REPRES5T+ PRIVATE CAPITAL TRY TO P>E D[N EXP5DITURES1 TO 5D DEFICIT F9ANC+ & TO RE/ORE GOV]NM5T-RUN 9DU/RIES TO PRIVATE EXPLOITATION4 ,?IS HAPP5$ 9 PO/W> ,AM]ICA & 9 O!R CAPITALI/ NATIONS4 ,BUT NO:]E DID IT SUCCE$ 9 REE/ABLI%+ PREVI\SLY EXI/ RELATIONS BETWE5 ! PRIVATE & PUBLIC SECTORS ( ! ECONOMICS ,! RATIO ( GOV]NM5T EXP5DITURES TO ! ,AM]ICAN GROSS NATIONAL PRODUCT1 = 9/ANCE1 0:I* WAS #b P] C5T 9 #aici & ROSE TO #eb P] C5T 9 #a#i#d#d1 WAS /ILL AB\T #ce P] C5T 9 #a#i#d#f40.<#a.> ,UNLESS CONDITIONS %\LD *ANGE RADICALLY 9 FAVOR ( A R5EW$ M>KET-DET]M9$ EXPANSION ( CAPITAL1 GOV]NM5T-9DUC$ & !RE=E GOV]NM5T-CONTROLL$ PRODUCTION IS B\ND TO GR[ 9 PEACE AS IT GREW 9 W>4 ,& SO LONG AS ! PR9CIPLE ( COMPETITIVE CAPITAL PRODUCTION PREVAILS1 /EADILY GR[+ PRODUCTION WILL 9 9CREAS+ MEASURE BE A 0PRODUCTION = ! SAKE ( PRODUCTION10 B5EFIT+ NEI!R PRIVATE CAPITAL NOR ! POPULATION AT L>GE4 ,?IS PROCESS IS SOME:AT OBSCUR$1 IT IS TRUE1 BY ! APP>5T PR(ITABILITY ( CAPITAL & ! LACK ( L>GE-SCALE UNEMPLOYM5T4 ,LIKE ! /ATE ( PROSP]ITY1 PR(ITABILITY1 TOO1 IS N[ L>GELY GOV]NM5T-MANIPULAT$4 ,GOV]NM5T SP5D+ & TAXATION >E MANAG$ SO AS TO /R5G!N BIG BUS9ESS AT ! EXP5SE ( ! ECONOMY AS A :OLE4 0,SUBSIDY HAS BECOME SO ALL-P]VASIVE ?AT IT CAN PROP]LY BE SAID WE LIVE 9 AN AGE ( 'GOV]NM5T BY SUBSIDY1' MEAN+ ?AT SUBSIDY IS A PR9CIPAL1 OR PR$OM9ANT1 9/RUM5T = ! EFFECTUATION ( PUBLIC PURPOSES10.<#b.> ,SUBSIDIES TO O!R GR\PS1 TO F>M]S1 = 9/ANCE1 >E M]ELY A CONSEQU5CE ( ! SUBSIDIZATION ( BIG BUS9ESS1 :I* IS UNAVOIDABLE IF ECONOMIC DECL9E IS TO BE =E/ALL$1 ,SMALL PRODUC]S DO NOT %>E 9 GOV]NM5T-9DUC$ 0PROSP]ITY0 & !IR SPOKESM5 WOND] :Y IT IS ?AT 09 A P]IOD *>ACT]IZ$ BY ?REE-%IFT 9DU/RIAL ACTIVITY1 TREM5D\S SALES VOLUME & RECORD-MAK+ PR(ITS1 !RE IS SU* A HI< RATE ( SMALL BUS9ESS BANKRUPTCIES40.<#c.> ,?IS IS SO BECAUSE 0! HUNDR$ BIGGE/ CORPORATIONS ACC\NT$ = #f#b4#b P] C5T ( ALL PRIME DEF5SE CONTRACTS 9 ! LA/ LIVE YE>S10.<#d.> BECAUSE BIG BUS9ESS G5]ALLY F9ANC$ ITS EXPANSION L>GELY FROM F$]AL FUNDS1 RAIS$ ITS PR(ITABILITY BY WAY ( 9T]E/-FREE LOANS1 TAX EVASIONS1 ACCEL]AT$ AMORTIZATION S*EMES1 ETC4-& BECAUSE IT CANNOT BE O!RWISE S9CE MOD]N >MAM5T PRODUCTION PRESUPPOSES ! TE*NOLOGIES ( BIG BUS9ESS1 :I*1 AS ! FACTOR ?AT DET]M9ES ! TR5D ( ! ECONOMY1 MU/ BE KEPT GO+ AT ANY PRICE4 ,EV5 ?\< IT IS TRUE ?AT ! GOV]NM5T HAS 0AN 5ORM\S P[]1 ! V]Y EXI/5CE ( :I* IS FATAL TO PRIVATE 5T]PRISE10 ?AT' IT 0CAN *OOSE ! COMPANIES ?AT >E TO SURVIVE10 & ?AT 0! DESIGNATION ( !SE '*OS5 9/RUM5TS' (T5 TAKES PLACE AS HAPHAZ>DLY AS BL9DFOLD$ *ILDR5 AT A BIR?DAY P>TY P9 ! TAIL ON A PAP] DONKEY10.<#e.> /ILL1 AS ) COMPETITION1 ! DI/RIBUTION ( SOCIAL SURPLUS-VALUE BY WAY ( GOV]NM5T POLICIES MU/ S]VE ! FUR!R EXPANSION ( CAPITAL & !RE) ITS FUR!R CONC5TRATION4 ,H[EV] MU* PRODUCTION MAY BE GOV]NM5T-9DUC$1 ! 0MIX$ ECONOMY10 TO BE SU*1 PRESUPPOSES ?AT A SUB/ANTIAL P>T ( ! SOCIAL CAPITAL REMA9S 9 PRIVATE H&S4 ,S9CE GOV]NM5T FUNDS CAN COME ONLY FROM TAXATION &1 P]HAPS1 FROM GOV]NM5T-[N$ 5T]PRISES1 ADDITIONAL FUNDS MU/ COME FROM NON-GOV]NM5TAL S\RCES4 ,9 ORD] TO 9CREASE ! SCALE ( PRODUCTION & TO ACCUMULATE CAPITAL1 GOV]NM5T CREATES 0DEM&0 BY ORD]+ ! PRODUCTION ( NON-M>KETABLE GOODS1 F9ANC$ BY GOV]NM5T BORR[+S4 ,?IS MEANS ?AT ! GOV]NM5T AVAILS ITSELF ( PRODUCTIVE RES\RCES BELONG+ TO PRIVATE CAPITAL :I* W\LD O!RWISE BE IDLE4 ,! BORR[$ FUNDS ATE M]ELY MONET>Y EXPRESSIONS ( ! GOV]NM5T'S P[] TO SET UNEMPLOY$ RES\RCES TO WORK4 ,! RIS+ NATIONAL DEBT 9DICATES ?AT ?IS P[] HAS BE5 GRANT$ ONLY TEMPOR>ILY & = A PRICE1 I4E41 ! 9T]E/ PAID TO ! HOLD]S ( GOV]NM5T BONDS4 ,BUT AS GOV]NM5T-SP5D+ ON NON-PR(ITABLE UND]TAK+S CANNOT YIELD 9T]E/1 ! NATIONAL DEBT HAS TO BE S]VIC$ \T ( FUTURE PR(ITS BY ! CR$ITORS !MSELVES4 ,! TRANSF] ( CONTROL OV] PRODUCTIVE RES\RCES FROM PRIVATE CAPITAL 9TO ! H&S ( GOV]NM5T BY WAY ( DEFICIT-F9ANC+ :I* CREATES 0DEM&0 ( A SPECIFIC TYPE1 NAMELY PUBLIC WORKS & >MAM5TS IS1 9 P>T1 AN 9CREASE ( ! DEM& REQUIR$ = PRIVATE ,CAPITAL EXPANSION1 ?AT IS1 = ! PRODUCTION ( ADDITIONAL CAPITAL4 ,9 ?IS S5SE1 DEFICIT F9ANC+ IS ! CONT9UATION ( ! ACCUMULATION PROCESS4 ,BUT ?\< GOV]NM5T-9DUC$ EXPANSION ( PRODUCTION BR+S =? A L>G] PRODUCTIVE APP>ATUS1 /ILL NOM9ALLY 9 ! H&S ( PRIVATE CAPITAL1 IT CAN BE FULLY UTILIZ$ ONLY AT ! COMM& ( GOV]NM5T4 ,TO ! EXT5T TO :I* ?IS IS TRU]1 PRIVATE CAPITAL ACCUMULATION HAS REA*$ ! 5D4 ,:ILE PRODUCTION IS /ILL = PRIVATE GA91 ECONOMIC EXPANSION IS A FUNCTION ( GOV]NM5T4 ,! GR[+ NATIONAL DEBT1 OR ! CONT9U\S 9CREASE ( GOV]NM5T-9DUC$ PRODUCTION1 IMPLIES AN 9CREAS+ NATIONALIZATION ( CAPITAL4 ,%ORT ( A REV]SAL ( ?IS PROCESS1 ( A RETURN TO PRIVATE1 CAPITAL ACCUMULATION1 !RE IS NO POSSIBILITY ( GETT+ 0! GOV]NM5T \T ( BUS9ESS10 :I* IS NO LONG] BUS9ESS 9 ! TRADITIONAL S5SE1 ANYWAY4 ,I,I,I ,TO PRODUCE BEYOND ! M>KET DEM& UND] CONDITIONS ( PRIVATE CAPITAL ACCUMULATION MADE 0S5SE0 BECAUSE ( ! CONC5TRATION TR5D IMPLI$ 9 CAPITAL COMPETITION4 ,/RONG] CAPITAL DE/ROYS WEAK] & PREV5TS ! RISE ( NEW COMPETITORS NATIONALLY & - ) GREAT] DIFFICULTY - 9T]NATIONALLY4 0,OV]-PRODUCTION10 ?R\< ! M$IA ( CRISIS & DEPRESSION1 DE/ROYS CAPITAL & 5L>GES ! DEM& = ! SURVIV+ BIGG] CAPITALS1 ?US SECUR+ !IR PR(ITABILITY & FUR!R EXPANSION4 ,!RE W\LD BE LESS NE$ = GOV]NM5T MANIPULATION ( ! ECONOMY IF PROLONG$ WORLD-WIDE DEPRESSIONS W]E /ILL A POSSIBILITY1 ABLE TO LEAD1 BY DE/ROY+ CAPITAL1 TO A NEW 9T]NATIONAL CAPITAL /RUCTURE CAPABLE ( FUR!R PR(ITABLE ACCUMULATIONS4 ,) ?IS POSSIBILITY ELIM9AT$ BECAUSE ( NATIONALLY-DIRECT$ ECONOMIES1 ! IMPROVEM5T ( CONDITIONS = PRIVATE CAPITAL =MATION BY HOLD+ BACK OR CUTT+ BACK EXI/+ AM\NTS ( GOV]NM5T 9T]V5TION >E ONLY A TEMPOR>Y POSSIBILITY4 ,ACCUMULATION 9 ! PRIVATE OR /ILL L>GELY PRIVATE CAPITALI/ ECONOMY CONT9UES TO REQUIRE1 H[EV]1 P]IODIC CAPITAL DE/RUCTION = ! FUR!R EXPANSION ( MORE CONC5TRAT$ CAPITAL 5TITIES )9 AN ALT]$ 9T]NATIONAL CAPITAL /RUCTURE4 ,BECAUSE ! ECONOMIC CRISIS HAS LO/ ITS EFFECTIV5ESS 9 ?IS RESPECT1 ! FUNCTION ( ! SO-CALL$ BUS9ESS-CYCLE1 :I* HAS BE5 TAK5 OV] BY GOV]NM5T1 APPE>S AS AN >MAM5T-DIS>MAM5T CYCLE1 ?AT IS1 AS ! 9CREASE OR DECREASE ( GOV]NM5T SP5D+ 9 ORD] TO MA9TA9 & 9CREASE A GIV5 LEVEL ( PRODUCTION4 ,ITS IDEOLOGICAL EXPRESSIONS >E P]IODS ( W>- & PEACE-MONG]+1 NEI!R ( :I* 9DICATES A REAL DRIVE T[>DS W> NOR A REAL ATTEMPT TO W>D IT OIL4 ,IT M]ELY REFLECTS ! IMPASSE 9 :I* CAPITALISM F9DS ITSELF1 ) NO SOLUTION 9 W> & NONE 9 PEACE4 ,!RE IS NO 0GR& /RATEGY0 ) REG>D TO W> OR PEACE4 ,!RE IS ONLY A DRIFT+ T[>DS ONE OR ! O!R1 DET]M9$ NOT BY CONSCI\S CONSID]ATIONS ( LONG-T]M 9T]E/S NOR BY AN 9SANE COMMITM5T TO SOME 0HI/ORICAL MISSION10 BUT BY ! ECONOMIC IMPASSE ITSELF & ! SOCIAL 9]TIA ?AT IS CREAT$ BY ! ABILITY TO 9CREASE BO? PRODUCTIVITY & WA/E-PRODUCTION4 ,PRIOR TO ! FIR/ WORLD W>1 ! RELATIVE /AGNATION ( ,EUROPEAN CAPITAL WAS ALREADY MITIGAT$ BY A GOV]NM5T-FO/]$ >MAM5TS RACE & ,AM]ICA'S SL[+ RATE ( CAPITAL EXPANSION WAS REV]S$ BY ! W> ITSELF4 ,H] RECOV]Y ( #aiae 0WAS G5]AT$ BY ! DEM& = W> SUPPLIES EMANAT+ FROM ,EUROPEAN GOV]NM5TS40 ,EXPANSION ( PRODUCTION 0WAS D]IV$ 9 P>T FROM TAXATION & 9 P>T FROM ! SALE ( SECURITIES TO 9DIVIDUALS & BANK+ 9T]E/S10 SO ?AT ! PROCESS ( ,AM]ICAN RECOV]Y 0WAS G5]AT$ BY AN \TP\R+ ( PUR*AS+ P[] BY WAY ( GOV]NM5T TREASURIES4 ,IT DID NOT BEG9 ) EI!R AN EXPANSION ( ORD9>Y CONSUMPTION DEM& OR AN 9CREASE 9 ! PRODUCTION ( CAPITAL GOODS40.<#f.> ,SET 9 MOTION BY ! POLICIES ( GOV]NM5TS 5GAG$ 9 OR PR(IT+ FROM W>1 TOTAL WORLD PRODUCTION ROSE TO UNPREC$5T$ HEIGEM5T (1 !IR PRE-W> LEVEL ( PRODUCTION AT ! PRICE ( 9CREAS+ 9DEBT$NESS TO ,AM]ICA4 ,AM]ICA PROSP]$1 H[EV]1 & 9 #aibi H] WEAL? WAS TWO-&-A-HALF TIMES AS GREAT AS 9 #a#i#a#d4 ,MEASUR$ BY WORLD PRODUCTION1 ECONOMIC ACTIVITY HAD 9CREAS$ & CAPITAL HAD ACCUMULAT$4 ,ITS SEAT ( /R5G? HAD %IFT$ FROM ,EUROPE TO ,AM]ICA & AS ) ALL PREVI\S P]IODS ( DEPRESSION1 ! W> HAD T\*$ (F A NEW EXPANSION ( CAPITAL & HAD CONC5TRAT$ IT 9 ! /RONGE/ CAPITALI/ NATIONS4 ,?\< ,AM]ICAN PRODUCTION GREW & H] 0NATIONAL WEAL? 9CREAS$1 ?AT PORTION UTILIZ$ DIRECTLY = ! REPRODUCTION PROCESS ( WEAL? CONT9U$ TO DECL9E40.<#g.> ,9 O!R WORDS1 !RE WAS A SLACK5+ ( ! RATE ( ACCUMULATION2 ! P]C5TAGE ( PRODUCTIVE CAPITAL 9 RELATION TO NONPRODUCTIVE WEAL? BECAME LESS 9/EAD ( MORE4 ,?IS WAS NO LONG] ! TYPE ( CAPITAL EXPANSION ?AT *>ACT]IZ$ ! N9ETE5? C5TURY2 IT WAS A CONDITION :I* ,KEYNES LAT] CALL$ 0LIQUIDITY PREF]5CE40 ,! RATIO ( NET 9VE/M5T TO NATIONAL 9COME 9 ! ,UNIT$ ,/ATES ROSE UP TO ! TURN ( ! C5TURY & DECL9$ FROM !N ON TO NE>LY NO?+ 9 ! #a#i#b#i-#a#i#c#h P]IOD4.<#h.> ,! /ATE ( 0LIQUIDITY PREF]5CE0 9DICAT$ ?AT CAPITAL EXPANSION 9ITIAT$ BY W> & C>RI$ OV] 9TO PEACE WAS NOT 5\< TO LEAD TO A G5]AL EXPANSION ( CAPITAL PRODUCTION UND] ! CONDITIONS ( A M>KET-DET]M9$ ECONOMY4 ,AFT] A DECADE ( LIMIT$ PROSP]ITY1 RE/RICT$ L>GELY TO ! ,UNIT$ ,/ATES1 A NEW COLLAPSE ( ! M>KET SY/EM ,J$ TO NEW /ATE 9T]V5TIONS4 ,!SE1 H[EV]1 SUCCE$$ ONLY 9 /ABILIZ+ DEPRESSION CONDITIONS2 ! FULL UTILIZATION & FUR!R EXPANSION ( PRODUCTION HAD TO AWAIT ANO!R W>4 ,VA/ DEVA/ATIONS 9 ! SECOND WORLD W> WEAK5$ BO? ,EUROPE & ,ASIA & ASSUR$ ,AM]ICA'S SUPREMACY )9 ! WORLD ECONOMY4 ,W> WAS N[ VIEW$ 0AS A GREAT NEW 9DU/RY :OSE COLOSSAL DEM&S /IMULATE ECONOMIC ACTIVITY 9 EV]Y NOOK & CRANNY ( ! ECONOMIC SY/EM10 EV5 ?\< 0! EXPECT$ YIELDS :I* RAISE ! M>G9AL EFFICI5CY ( GOV]NM5T 9VE/M5TS >E MA9LY 9 T]MS ( SOCIAL & MILIT>Y ADVANTAGES RA!R ?AN PECUNI>Y PR(ITS40.<#i.> 0,! DE/RUCTION ( ! ,EUROPEAN ECONOMY10 ,?URMAN ,>NOLD PO9T$ \R1 0HAS SOLV$ ! PROBLEM ( 'EFFECTIVE DEM&' = ! ,AM]ICAN ECONOMY1 444& WE >E 9 A DAWN ( ! GREATE/ 9DU/RIAL ]A ?IS C\NTRY EV] HAD40 ,DE/RUCTION1 HE EXPLA9$1 0IS SOMETIMES NECESS>Y4 ,:5 ,HITL] A*IEV$ P[]1 ! DE/RUCTION SEEM$ NECESS>Y4 ,N[ IT IS NECESS>Y TO MEET ! ?REAT ( ,RUSSIA444 & P]HAPS A C]TA9 AM\NT ( DE/RUCTION OR DISLOCATION MAY ACCOMPANY ! ?REAT1 BUT IT IS NECESS>Y TO DO IT4 ,& :AT HAS HAPP5$ BECAUSE ( ?AT NECESSITY3 WE HAVE GOTT5 ON \R TOES & WE >E GO+ PLACES40.<#a.> ,AM]ICA HAS1 9 FACT1 MA9TA9$ A /ATE ( VIRTUALLY FULL EMPLOYM5T BY WAY ( W>1 9FLATION & >MAM5T PRODUCTION4 ,!RE WAS SUFFICI5T RECOV]Y 9 EXTRA-,AM]ICAN ECONOMIES ALSO1 SO ?AT WORLD PRODUCTION HAS RIS5 OV] :AT IT WAS BE=E ! SECOND WORLD W>1 BUT AT ! HALF-WAY /ATION ( RECON/RUCTION IT BECAME EVID5T ?AT ! OLD PRE-W> CONTRADICTIONS HAD ALSO BE5 REBUILT4 ,9 ! BEG9N+ ( #a#i#e1 UNEMPLOYM5T BECAME ONCE MORE A DOM9ANT ISSUE & UNSALABLE SURPLUSES PIL$ UP 9 ALL CAPITALI/ NATIONS4 ,! ,KOREAN W> 5D$ ! 0RECESSION0 QUICKLY4 ,NOT ! M>KETABILITY ( GOODS 9 G5]AL BUT DEF5SE PRODUCTION WAS ONCE MORE A PRIME CONC]N4 ,! 0BUS9ESS-CYCLE10 APPE>+ AS ! EXPANSION & CONTRACTION ( GOV]NM5T-9DUC$ PRODUCTION1 IS *>ACT]IZ$ MORE BY POLITICAL /RUGGLE ?AN ECONOMIC COMPETITION4 ,BUT ATTEMPTS AT DIS>MAM5T 9 ! ,WE/]N WORLD1 H[EV] S]I\SLY CONTEMPLAT$1 >E LIMIT$ BY PRIVATE CAPITAL =MATION4 ,ANY NEW BUS9ESS DECL9E BR+S ) IT A NEW %IFT TO GOV]NM5T SP5D+4 ,P>TIAL DIS>MAM5T MAY !N BE REG>D$ AS A SIGN ( /ABILIZATION1 TO BE DISC>D$ AS SOON AS ! ECONOMY REQUIRES ADDITIONAL GOV]NM5T-9DUC$ 9VE/M5TS4 ,?IS1 H[EV]1 N>R[S ! EXPANSIVE P[] ( PRIVATE CAPITAL /ILL FUR!R4 ,AL?\< ! PR(ITABILITY ( PRIVATE 5T]PRISE MAY NOT DIM9I% OR MAY EV5 9CREASE ?R\< ! 5HANCEM5T ( CAPITAL CONC5TRATION1 ) REG>D TO ! :OLE ( ! ECONOMY LESS CAPITAL ACCUMULATES TO PRIVATE ACC\NT4 ,?IS IS A NEW SITUATION4 ,9 ! PA/1 NONPR(ITABLE CAPITAL WAS ABSORB$ 9 L>G] CAPITAL UNITS4 ,N[ PRODUCTIVE RES\RCES >E LOS+ !IR CAPITAL FUNCTION ALTOGE!R4 ,I,V ,AM]ICAN CAPITAL EXPANSION WAS B\ND TO A PRODUCTION = ,EUROPEAN M>KETS1 P>TICUL>LY DUR+ P]IODS ( W>1 & TO ! EXPORT ( CAPITAL MA9LY TO ,WE/]N NATIONS4 ,DUE TO /RUCTURAL *ANGES 9 ! WORLD ECONOMY-! BREAKUP ( ! WORLD-M>KET ?R\< ! EXTRAORD9>Y & ALL->\ND PRODUCTION ( ! ,AM]ICAN ECONOMY1 ! 9DU/RIALIZATION ( HI!RTO ECONOMICALLY-UND]DEVELOP$ C\NTRIES1 ! AUT>*IC T5D5CIES ( /ATE-CAPITALI/.<#a#a.> NATIONS & ! COLLAPSE ( AN 9T]NATIONAL DIVISION ( LABOR DET]M9$ BY NO?+ BUT ! ACCUMULATION NE$S ( ,WE/]N CAPITALISM-,EUROPE TEAS$ TO BE A M>KET :I* MADE POSSIBLE ! FUR!R EXPANSION & EXT5SION ( ,AM]ICAN CAPITAL1 ,WE/]N ,EUROPE'S [N EXPORT NE$S1 AS WELL AS H] 9ABILITY COMPETITIVELY TO MEET ,AM]ICAN PRODUCTION1 BAS$1 AS IT IS1 ON A HI<] PRODUCTIVITY1 PREV5TS A M>KET 9TEGRATION ( ! ECONOMIES ( ! FREE WORLD40 ,AN ALL-\T ,AM]ICAN EF=T TO CAPTURE ! M>KETS ( ! ''FREE WORLD0 IS EQUALLY PRECLUD$ BY PROTECTIONI/ POLICIES & ! POLITICAL NECESSITY TO MA9TA9 SOME SORT ( UNITY 9 ! ,WE/]N WORLD4 ,CAPITAL EXPANSION IMPLIES1 H[EV]1 ITS CONC5TRATION NATIONALLY AS WELL AS 9T]NATIONALLY4 ,ITS C5T]1 HAV+ %IFT$ FROM ,EUROPE TO ,AM]ICA1 ?REAT5S TO %IFT AGA9 FROM ,AM]ICA1 TO ! NEWLY-DEVELOP+1 SO-CALL$ 0SOCIALI/10 BUT ACTUALLY /ATE-CAPITALI/1 NATIONS ( ! ,EA/]N P[] BLOC4 ,WE/]N SUP]IORITY 9 PRODUCTION1 ?\< /ILL A FACT1 IS SL[LY DECL9+4 ,ACCORD+ TO A /UDY ( ! ,UNIT$ ,NATIONS ,ECONOMIC ,COMMISSION1.<#a#b.> ,RUSSIA ACCUMULATES 9DU/RIAL CAPITAL AT A F> HI<] RATE ?AN ,WE/]N ,EUROPE1 444& IS APPROA*+ ! RATE ( ! ,UNIT$ ,SLATES4 ,TO A SOME:AT LESS] EXT5T ?IS IS ALSO TRUE = ! SATELLITE C\NTRIES4 ,EV5 IF TRADE RELATIONS BETWE5 ! ,EA/ & ,WE/ IMPROVE & DEVELOP1 !Y WILL DO SO AS BYPRODUCTS ( ! EXPANSION ( ! NEW EMPIRES >\ND :I* AN 9CREAS+ P>T ( ! WORLD'S ECONOMIC ACTIVITY BEG9S TO REVOLVE4 ,! TOTALIT>IAN ?REAT TO ! ECONOMIC SUPREMACY ( ! 0FREE WORLD0 IS NOT IMM$IATE1 H[EV]1 DESPITE ! HI< ACCUMULATION RATE4 ,TOTAL PRODUCTION & G5]AL PRODUCTIVITY 9 ! ,EA/ >E /ILL BEH9D ?OSE ( ,WE/]N CAPITALISM4 ,?IS RELATIVE BACKW>DNESS DOES NOT1 ( C\RSE1 PREV5T C\NTRIES ( ! ,EA/]N P[] BLOCK FROM (F]+ M>KETS = O!R NATIONS' SURPLUS PRODUCTS1 = TRADE IS NOT BAS$ ON ABSOLUTE SURPLUSES4 ,! FACT ?AT ,EA/]N C\NTRIES !MSELVES /& 9 NE$ ( FUR!R 9DU/RIALIZATION DOES NOT H9D] ! EXPORT ( 9DU/RIAL PRODUCTS IF ?IS APPE>S ADVANTAGE\S = POLITICAL OR ECONOMIC REASONS1 OR BO?4 ,!RE IS NO?+ SURPRIS+ AB\T ! FACT 0?AT ! ,RUSSIANS HAVE >RANG$ TO SELL A MILLION TONS ( /EEL TO ,9DIA OR HAVE UND]TAK5 TO ]ECT A NEW /EEL PLANT !RE OR ?AT !Y & ! SATELLITE C\NTRIES >E CONDUCT+ AN EXPORT DRIVE 9 ,MIDDLE ,EA/ M>KETS1 ) ! ACC5T ON METALS & 5G9E]+ PRODUCTS4 ,!SE >E PRECISELY ! 9DU/RIES 9 :I* ,SOVIET PROGRESS HAS BE5 MO/ RAPID 9 REC5T YE>S & 9 :I* 9VE/M5T HAS BE5 P>TICUL>LY HEAVY40.<#a#c.> ,) L[] WAGES & PRODUCTIVITY 9 SELECT$ FIELDS APPROA*+ ?AT ( ,WE/]N ,EUROPE1 ,RUSSIA BECOMES A =MIDABLE COMPETITOR 9 EV5 A /RICTLY COMM]CIAL /RUGGLE4 ,& H] OPPORTUNITIES 9 ?IS RESPECT >E FUR!R$ BY ! GREAT] 9ABILITY ( ,WE/]N NATIONS TO SUPPORT TO ANY SIGNIFICANT EXT5T ! 9DU/RIALIZATION ( UND]DEVELOP$ C\NTRIES4 ,!IR [N DEP5D5CE ON *EAP RAW MAT]IALS & !IR UNCEAS+ NE$ TO EXPORT MANUFACTUR$ GOODS 9 9CREAS+ MEASURE OP]ATES AGA9/ ! TRANSITION ( ! 0BACKW>D0 PRIM>Y PRODUC+ C\NTRIES 9TO MOD]N 9DU/RIAL NATIONS4 ,BY 9TRODUC+ & DEVELOP+ ! CAPITALI/ MODE ( PRODUCTION 9 O!R C\NTRIES ?R\< COLONIZATION1 TRADE OR CAPITAL EXPORT1 ! ADVANC$ CAPITALI/ NATIONS CREAT$ ! CONDITIONS ( NATIONAL REVOLUTION 9 ALL BACKW>D C\NTRIES4 ,!SE REVOLUTIONS >E /ILL 0CAPITALI/ REVOLUTIONS02 BUT1 BE+ DIRECT$ AGA9/ BO? NATIVE BACKW>DNESS & =EIGN CONTROL1 !Y APPE> AS ANTI-CAPITALI/ OR ANTI-IMP]IALI/ REVOLUTIONS S9CE !Y OPPOSE ! UNITY ( 9T]E/S ( =EIGN CAPITAL & ITS NATIVE ALLIES 9 ! BACKW>D NATIONS ,?IS NEW 0NATIONALISM40 :I*1 ON ! ONE H&1 DISRUPTS ! E/ABLI%$ 9T]NATIONAL DIVISION ( LABOR &1 ON ! O!R1 EXPRESSES H[ ?IS DIVISION ( LABOR 7ASSOCIAT$ AS IT IS ) A P>TICUL> CON/ELLATION ( ACCUMULAT$ CAPITAL7 IS 9ADEQUATE = A FUR!R G5]AL CAPITAL EXPANSION1 AFFECTS ! IMP]IALI/ NATIONS AS WELL4 ,! DIS9TEGRATION ( ! HI/ORICALLY-DEVELOP$ WORLD M>KET1 AS WELL AS ! /AGNATION ( CAPITAL AT ! BASE ( ?IS DIS9TEGRATION1 LEADS !M TO ALWAYS FRE% ATTEMPTS TO SOLVE NATIONAL PROBLEMS EI!R BY RE%AP+ ! WORLD M>KET OR BY GA9+ GREAT] 9DEP5D5CE FROM IT4 ,! DIRECT+ ( ECONOMIC POLICIES BY GOV]NM5TS GR[S 9 BO? TYPES ( NATIONS1 ?OSE SEEK+ EXPANSION BY FREE+ !MSELVES FROM A CONTROLL$ WORLD M>KET & ?OSE SEEK+ EXPANSION ?R\< SU* CONTROLS4 ,! RESULT ( BO? !SE 5DEAVORS IS A GREAT] 9T]NATIONAL CAPITAL DEVELOPM5T4 ,EXPANSION TAKES PLACE1 ?\< NOT 9 CON=MITY ) ! EXI/+ C5TRALIZ$ & M>KET-DET]M9$ 9T]NATIONAL CAPITAL /RUCTURE4 ,EV5 ?\< BO? 9 COMPETITIVE CAPITAL ACCUMULATION IS CONTRADICT$ BY ,AM]ICA'S [N ECONOMIC ACTIVITY AT HOME & ABROAD1 DEVIATION FROM ?AT FAI? IS HELD TO BE A TEMPOR>Y EXP$I5CY4 ,AM]ICA'S =EIGN ECONOMIC POLICY IS /ILL CONC]N$ ) ! RESURRECTION ( A 0FREE10 ?AT IS1 ,AM]ICAN-CONTROLL$ WORLD M>KET & ! RESUMPTION ( 0G5U9E0 CAPITAL ACCUMULATION1 I4E41 = ! AUGM5TATION ( PRIVATE CAPITAL4 ,ALL 0NON-PR(ITABLE0 ACTIVITIES ASSOCIAT$ ) ! EXTRA-M>KET EXPANSION ( PRODUCTION >E UND]TAK5 NOT = !IR [N SAKE1 BUT >E REG>D$ AS EXP5DITURES TO KEEP ! WORLD OP5 TO ,AM]ICAN CAPITAL EXPANSION4 ,9 VIEW ( ,AM]ICA'S DOM9ANT POSITION 9 WORLD ECONOMY ?IS W\LD IMPLY TOTAL RE-ORGANIZATION ( ! WORLD'S CAPITAL /RUCTURE & DIVISION ( LABOR & SUBORD9ATION ( ALL NATIONAL ECONOMIES TO ! ACCUMULATION REQUIREM5TS ( ,AM]ICAN CAPITAL4 ,BUT ?IS IS AN IMPOSSIBLE TASK & ! SAD CONCLUSION FOLL[S ?AT 0! GREAT ]A ( ECONOMIC GR[? :I* ! ,WE/]N WORLD HAS EXP]I5C$ MAY F9ALLY COME TO AN 5D-NOT BECAUSE ( TE*NOLOGICAL LIMITATIONS BUT RA!R BECAUSE ( M>KET LIMITATIONS 444 = ! POLITICAL & IDEOLOGICAL DIFFICULTIES TO BE SURM\NT$ 9 BR++ AB\T ! NECESS>Y EXPANSION ( WORLD-TRADE MAY BE GREAT] ?AN PEOPLE >E PREP>$ TO FACE40.<#a#d.> ,:E!R IT IS W>RANT$ OR NOT1 SU* PESSIMISM DOES NOT =M POLICIES4 ,EV5 IF CAPITAL CONC5TRATION & C5TRALIZATION CANNOT EMBRACE ! WORLD1 !RE IS /ILL ! *OICE BETWE5 A L>G] OR SMALL] SLICE ( IT4 ,AL?\< EXI/+ /ATE-CAPITALI/ SY/EMS >E IRREVOCABLY LO/ TO PRIVATE CAPITAL EXPLOITATION1 7AS ,GEORGE ,F4 ,K5NAN HAS SAID1 0!RE IS A F9ALITY = BETT] OR WORSE1 AB\T :AT HAS OCCURR$ 9 ,EA/]N ,EUROPE40.<#a#e.>7 L>GE P>TS ( ! WORLD >E /ILL WAV]+ BETWE5 MIX$ & TOTALIT>IAN SY/EMS ( CAPITAL PRODUCTION4 ,IF ! TR5D ( ! TIME FAVORS ! LATT]1 ?AT IS ONLY ONE MORE REASON TO COMBAT ! TR5D4 ,IT IS ! O/5SIBLE SUCCESS ( ! /ATE-CAPITALI/ SY/EMS 9 MA9TA9+ !MSELVES & DEVELOP+ !IR ECONOMIES :I* 5C\RAGES UND]DEVELOP$ & HI!RTO CONTROLL$ NATIONS TO FOLL[ !IR EXAMPLE4 FROM A /RICTLY PRIVATE-5T]PRISE PO9T ( VIEW1 CONTA9M5T ( ! /ATE-CAPITALI/ SY/EMS W\LD NOT BE 5\<4 ,! SL[+-D[N & EV5TUAL DE/RUCTION ( ALL =MS ( 0SOCIALISM0 SEEMS H]E A NECESS>Y PR]EQUISITE = ! RE/RICTION ( GOV]NM5TAL ECONOMIC P[] 9 ! CAPITALI/ NATIONS4 ,FRONT ! RUL+ CAPITALI/ PO9T ( VIEW1 H[EV]1 GOV]NM5T 9VE/M5TS 9 ITS [N DEF5SE & 9 ! DEF5SE ( ALLI$ NATIONS >E NOT ONLY A WAY ( COMBAT+ ! EXT]NAL /ATE-CAPITALI/ ?REAT2 !Y >E A M$IUM = MA9TA9+ A NECESS>Y LEVEL ( ECONOMIC ACTIVITY AT HOME4 ,FUR!R 9CREASES 9 GOV]NM5T EXP5DITURES >\SE NO FE> SO LONG AS !Y PROMISE TO CREATE AN ECONOMIC SITUATION 9 :I* ! ABSOLUTELY 9CREAS$ GOV]NM5T SP5D+ IS RELATIVELY SMALL] BECAUSE ( A MU* L>G] PR(ITABLE PRIVATE CAPITAL EXPANSION4 ,?IS1 !N1 IS ! GOAL ( 9VE/M5TS = DEF5SE4 ,IF IT SUCCE$S 9 /OPP+ ! FUR!R SPREAD & EXPANSION ( COMPETITIVE SOCIAL SY/EMS1 IT WILL SECURE A L>G] BASE ( OP]ATION = PRIVATE CAPITAL4 ,! EXI/5CE ( SU* A BASE /ILL DOES NOT GU>ANTEE SUCCESSFUL CAPITAL ACCUMULATION1 BUT )\T IT1 EXPANSION HAS NO *ANCE AT ALL4 ,PROPAG&A TO ! CONTR>Y NOT)/&+1 ,AM]ICAN ECONOMIC =EIGN POLICY DIRECTS ITSELF TO ! POSSIBLE-?AT IS1 TO ATTEMPT+ TO MA9TA9 ITS PRES5T DOM9ANT POSITION 9 WORLD ECONOMY4 ,?IS1 ( C\RSE1 9CLUDES ATTEMPT+ TO MA9TA91 GA91 OR REGA9 9FLU5CE 9 & CONTROL OV] ACCESSIBLE P>TS ( ! WORLD4 ,RESPECT = ! FRE$OM & SELF-DET]M9ATION ( O!R SOCIETIES1 IT IS SAID1 DOES NOT 0REQUIRE ! ,WE/ TO SURR5D] ITS [N SECURITY & ITS TRULY VITAL ECONOMIC 9T]E/S 9 ! NAME ( SELF-DET]M9ATION :I* 9SI/S UPON EXPRESS+ ITSELF 9 A NATIONAL =M40.<#a#f.> ,?\< LITTLE CAN BE DONE AB\T EXI/+ /ATE-CAPITALI/ SY/EMS1 NEW ONES MU/ NOT >ISE4 ,! 0FREE WORLD0 MU/ NOT %R9K NOR MU/ ! NATIONS COMPRIS+ IT CONTRADICT ! ECONOMIC 9T]E/S ( ! ,WE/1 I4E41 ,AM]ICAN 9T]E/S ON :I* ! ECONOMIES ( ! ,WE/]N WORLD DEP5D4 ,9 BRIEF1 ! DEF5SE ( ! ,WE/ IS ! DEF5SE ( ! /ATUS QUO1 =TIFI$ BY ! HOPE1 IF NOT ! CONVICTION1 ?AT EV5 A DIVID$ WORLD /ILL (F]S OPPORTUNITIES = CAPITAL EXPANSION4 0,COEXI/5CE10 ONCE AN EMPTY PHRASE1 CON/ITUTES = ! TIME BE+ AN ACCEPTABLE BASIS = ,AM]ICAN =EIGN POLICY4 ,! /RUGGLE = A 0FREE WORLD0 HAS1 H[EV] RELUCTANTLY1 GIV5 WAY TO ! ATTEMPT TO MA9TA9 ,WE/]N CAPITALISM 9 ITS PRES5T =M4 ,9 ALL PROBABILITY ! TURN+ PO9T CAME ) ! ,*9ESE REVOLUTION & ,RUSSIA'S POSSESSION ( ATOMIC WEAPONS4 ,!RE WAS ALSO A PURELY 9T]NAL MOVEM5T AWAY FROM ! W>-GE>$ ECONOMY4 ,DEPRESSION & W> HA/5 ! DECL9E ( PRIVATE 5T]PRISE4 ,& ?\< >MAM5T PRODUCTION MAY =E/ALL A DEPRESSION1 W>1 AS IT IS N[ WAG$1 MAY EASILY LEAD TO ! COMPLETE EXT9CTION ( PRIVATE 5T]PRISE ECONOMY4 ,9 ANY CASE1 ! DEGREE ( GOV]NM5T CONTROL OV] ! ,AM]ICAN ECONOMY1 FO/]$ BY A DECADE ( DEPRESSION & ! SECOND WORLD W>1 WAS \T ( ALL PROPORTION TO SOCIAL P[] RELATIONS AS !Y ACTUALLY PREVAIL$ & ! P]SI/5T 9DIVIDUALI/IC IDEOLOGY4 ,! FE> GREW 0?AT ! L>G] 9T]V5TION ( GOV]NM5T 9 ! >EAS ( :AT HAS BE5 PRIVATE BUS9ESS1 UND]TAK5 9 ! H\RS ( MILIT>Y DANG] & CONT9U$ OV] A TIME :OSE 5D IS NOT 9 SIT ( ! ,AM]ICAN WAY ( LIFE40.<#a#g.> ,! REACTION AGA9/ ?IS T5D5CY IS A REACTION AGA9/ ECONOMIC MILIT>IZATION & W>4 ,V ,PRODUCTION = DEF5SE 9VOLVES F> MORE ?AN JU/ >MAM5TS4 ,! ECONOMY IS CON/ANTLY BE+ REORGANIZ$ TO COPE ) FREQU5T %IFTS ( P[] POSITIONS DUE TO POLITICAL1 ECONOMIC1 & /RATEGIC *ANGES4 ,! MILIT>Y APP>ATUS1 CONSI/+ ( BRAN*ES ( ! >M$ =CES & ! ECONOMIC1 SCI5TIFIC & ADM9I/RATIVE MA*9]Y BEH9D !M1 BECOMES 9CREAS+LY MORE EXP5SIVE BECAUSE ( BO? QUANTITATIVE GR[? & QUALITATIVE *ANGES4 ,TE*NOLOGICAL 9NOVATIONS >E UND]TAK5 )\T REG>D TO CO/ 9 ORD] TO GA9 ADVANTAGES OV] ! POT5TIAL 5EMY4 ,ALL ?IS LEADS TO 9T5SIVE ECONOMIC ACTIVITY & ! 9CREAS+ PRODUCTIVITY SUPPORTS CON/ANTLY GR[+ NONPRODUCTIVE EF=TS4 ,BUT ! PREVI\S TR5D ( CAPITAL ACCUMULATION1 ! CONC5TRATION ( SURPLUS-VALUE AS PRIVATE CAPITAL1 *ANGES 9TO CONC5TRATION 9 ! H&S ( GOV]NM5T4 _/_/ CON/ANTLY MA9TA9$1 & EV5 )\T W>1 ?IS PROCESS MU/ LEAD TO A COMPLETE *ANGE ( ! CAPITALI/ SY/EM4 ,S9CE ! TR5D IS VISIBLE ?R\< SOCIAL *ANGE AS WELL AS ?R\< ! SEP>ATE EXP]I5CES ( 9DIVIDUAL CAPITALS1 PRIVATE-PROP]TY 9T]E/S MU/ OPPOSE IT EV5 IF !IR IMM$IATE PR(IT REQUIREM5TS =CE !M TO SUPPORT IT4 ,! CAPACITY TO PRODUCE AN ABUNDANCE ( WA/E-MATT] IS GREAT] 9 SOME C\NTRIES ?AN 9 O!RS2 ! CAPITALI/ NATION MO/ PRODUCTIVE 9 ?IS RESPECT IS ALSO ! /RONGE/ 9 MILIT>Y T]MS4 ,IT SETS ! /&>D = WA/E-PRODUCTION & 9DUCES SU* PRODUCTION 9 C\NTRIES /ILL CAPABLE ( REAL CAPITAL =MATION4 ,RUSSIA1 = 9/ANCE1 NE$ NOT BE FAC$ ) ! PROBLEM ( 0OV]-PRODUCTION0 EV5 IF !RE WAS A COMPLETE CESSATION ( >MAM5T PRODUCTION4 ,IT IS NOT ONLY BECAUSE ( H] G5]AL BACKW>DNESS & NE$ TO EXP& PRODUCTION ( BO? CAPITAL & CONSUMPTION GOODS2 IT IS ALSO BECAUSE-!ORETICALLY-H] SOCIAL ORGANIZATION ALL[S = A NATIONALLY-PLANN$ DET]M9ATION ( BO? ! VOLUME & ! DIRECTION ( PRODUCTION4 ,! K9D ( PLANN+ ACTUALLY UND]TAK5 IS1 ( C\RSE1 DET]M9$ BY ! NE$S ( ! CLASS-DIVID$ C\NTRY )9 ! SETT+ ( 9T]NATIONAL P[] POLITICS4 ,ALL ! POSSIBLE ADVANTAGES ( COMPLETE GOV]NM5T CONTROL CAN ?US BE ONLY P>TLY 5JOY$4 ,! FATE ( ,RUSSIAN ECONOMY REMA9S B\ND TO ! FATE ( CAPITALISM 9 G5]AL4 ,9 PR9CIPLE1 H[EV]1 & ASSUM+ ?AT ,RUSSIA EXI/$ 9 AN UNASSAILABLE /ATE ( ISOLATION1 %E C\LD = SOME TIME TO COME 5GAGE 9 0G5U9E0 CAPITAL ACCUMULATION4 ,EV5 N[ ,RUSSIA EXP]I5CES AN 5HANC$ CAPITAL EXPANSION1 BUT ?IS EXPANSION IS NOT ( ! TYPE ?AT SPELL$ ! RISE ( CAPITALISM4 ,IT IS ! TYPE *>ACT]I/IC ( ITS DECL9E4 0,OV]-PRODUCTION10 :I* HI!RTO >OSE \T ( OV]-ACCUMULATION & CAPITAL /AGNATION1 N[ ACCOMPANIES AS WA/E-PRODUCTION ! V]Y FIR/ /AGES ( CAPITAL EXPANSION & EV5 ?AT ( PRIMITIVE ACCUMULATION4 ,9 ?IS WAY1 ASC5D+ /ATE-CAPITALISM F9DS ITS WAY BLOCK$ BY ! DESC5D+ PRIVATE 5T]PRISE SY/EM4 ,PRIVATE 5T]PRISE1 /ILL ON TOP 9 T]MS ( PRODUCTION & PRODUCTIVITY1 HELPS DET]M9E ! *>ACT] ( /ATE-CAPITALI/ PRODUCTION & ITS EXPLOITATIVE SOCIAL RELATIONS4 ,WA/E-PRODUCTION IS ?US A =M ( COMPETITION BETWE5 ! 0PEOPLE'S SOCIALISM0 & ! 0PEOPLE'S CAPITALISM10 9 :I* ! ADVANTAGES >E /ILL ON ! SIDE ( ,WE/]N CAPITALISM4 ,/ATE-CAPITALI/ GOV]NM5TS1 REPRES5T+ ! ECONOMIC SY/EM 9 ASC5DANCY1 FAVOR PEACE4 ,!Y WILL1 ( C\RSE1 GO TO W> 9 DEF5SE ( !IR EXI/5CE OR TO HOLD !IR [N & ACQUIR$ T]RITORIES & EV5 P]HAPS :5 W> APPE>S TO BE A %ORT-CUT TO IMP]IALI/ GOALS-A CONV5I5CE RA!R ?AN A RISK4 ,YET1 BE+ /ILL BEH9D LEAD+ CAPITALI/ NATIONS ECONOMICALLY1 AN ALL-\T W> W\LD PU% !M EV5 F>!R BACK :E!R !Y W]E TO EM]GE 0VICTORS0 OR 0LOS]S40 ,?\< BORN ( W> & REVOLUTION1 !Y DO NOT SEE !M AS NECESS>Y TO EXPANSION - AT ANY RATE1 NOT AT ?IS JUNCTURE4 ,>MAM5TS PRODUCTION ON ITS PRES5T SCALE1 :I* TO ! ,WE/]N WORLD PRES5TS A TEMPOR>Y1 IF DUBI\S1 WAY \T ( AN 9SOLUBLE DILEMMA1 IS TO !M AN EV5 HEAVI] BURD5 ?AT H9D]S !IR DEVELOPM5T & PO/PONES ! REALIZATION ( !IR GOAL - TO REA* & OV]-REA* ,WE/]N CAPITALISM4 0,ECONOMIC 9T]E/S0 HI!RTO (T5 MADE = W>4 ,N[ !Y HAVE APP>5TLY BECOME A DET]R5T TO W> 9 SPITE ( & BECAUSE ( >MAM5T PRODUCTION :I*1 9 SIZE & DE/RUCTIV5ESS1 HAS NO C\NT]P>T 9 HI/ORY4 ,NEI!R ! CAPITALI/S NOR ! /ATE-CAPITALI/ NATIONS >E READY TO DRIVE !IR ANTAGONISMS TO ! PO9T ( W>1 NOT M]ELY BECAUSE ( !IR MUTUAL RESPECT = ! DE/RUCTIV5ESS ( MOD]N WEAPONS1 BUT ALSO BECAUSE ( !IR CONC]N ) CAPITAL ACCUMULATION 9 BO? ITS TRADITIONAL PRIVATE & MOD]N NATIONAL =M4 ,V,I ,! DRIVE ( PRIVATE 5T]PRISE SY/EMS TO KEEP ON ACCUMULAT+ 9 ! TRADITIONAL WAY & ASC5D+ ,/ATE-CAPITALISMS >E1 SO TO SPEAK1 ONLY ! TWO MA9 RIV]S ( DEVELOPM5T4 ,!Y >E ,HOOD$ BY MANY CONTRIBUTORY /REAMS ( 9DEP5D5T S\RCE4 ,RIS+ NATIONALISM 9 BACKW>D NATIONS & SOCIAL /RUGGLES 9 ADVANC$ C\NTRIES1 ?\< (T5 LOS+ !IR ID5TITY BY HAV+ TO ASS]T !MSELVES )9 ! L>G] CONFLICT BETWE5 TRADITIONAL & TOTALIT>IAN CAPITALISMS1 ASS]T !MSELVES NEV]!LESS & TURN ! WID] SOCIAL /RUGGLES 9TO SOME?+ MORE ?AN JU/ A CONTE/ BETWE5 TWO DIFF]5T1 YET 9T]LOCK$1 SY/EMS ( CAPITAL PRODUCTION4 ,! AMALGAM ( CONTRADICTORY SOCIAL TR5DS PREV5TS ANY /ABLE P>TITION ( ! WORLD 9TO TWO OPPOS+ UNIFI$ CAMPS & !RE) A PEACE BAS$ ON AN UND]/&+ OR COMPROMISE BETWE5 ! TWO GREAT CONT5D]S = WORLD RULE1 ,RUSSIA & ! ,UNIT$ ,/ATES4 ,! PRES5T L9EUP ( OPPOS+ NATIONS IS AS TEMPOR>Y & POLYMORPH\S AS WAS ! DIVISION ( ! WORLD 9TO FASCI/ & ANTI-FASCI/ P[]S DUR+ ! SECOND WORLD W>4 ,IT IS1 9 FACT1 A M]E1 CONSEQU5CE ( ! LA/ W>1 NOT ! RESULT ( CONSCI\S EF=TS TO UNIFY P>T ( ! WORLD BEH9D ONE OR ANO!R PR9CIPLE ( SOCIAL ORGANIZATION4 ,DEP5D5T NATIONS WILL FOLL[ ! POLICIES ( ! GREAT P[]S ONLY SO LONG AS !IR P[] PREVAILS1 & A NATION'S P[] PREVAILS ONLY SO LONG AS IT GR[S4 ,/AGNATION = ONE IMPLIES EXPANSION = ! O!R JU/ BECAUSE ! WORLD IS NOT P>TITION$ 9TO TWO HUGE1 UNIFI$ CAMPS4 ,9 ORD] TO AVOID /AGNATION1 EA* P[] MU/ 9CREASE ITS ECONOMIC /R5G? & !RE) MA9TA9 & 5L>GE ITS 9FLU5CE OV] O!R NATIONS1 = ECONOMIC EXPANSION IS N[ C\PL$ TO IMP]IALI/IC CONTROL 9 SU* A WAY ?AT ! ONE IS A PRE-CONDITION ( ! O!R4 ,)\T D\BT+ ! S9C]ITY ( ! DESIRE = PEACE AMONG ,EA/]N AS WELL AS ,WE/]N NATIONS1 !IR UNAVOIDABLE ECONOMIC3 EXPANSION WILL NECESS>ILY RE-OP5 ! QUE/ION ( CRISIS & W>4 0,CO-EXI/5CE0 HAS NO FUTURE1 AS IT 9VOLVES TRANS=M+ CAPITALI/ MIX$ ECONOMY 9TO COMPLETE GOV]NM5T CONTROL4 ,A FAILURE TO /OP ! FUR!R GR[? ( /ATE-CAPITALI/ SY/EMS MU/ LEAD TO ! NATIONALIZATION ( CAPITAL 9 C\NTRIES /ILL L>GELY DEP5D5T ON A M>KET-EXPANSION ( CAPITAL PRODUCTION4 ,ECONOMIC CRISIS IS NO LONG] A SOLUTION BECAUSE ( ITS RE/RICTION 9 SPACE & BECAUSE ( ALT]$ SOCIAL CONDITIONS 9 :I* DEPRESSION1 NO LESS ?AN >MAM5T PRODUCTION1 9VOLVES ! FUR!R GR[? ( ! 0PUBLIC SECTOR0 ( ! ECONOMY4 ,MOREOV]1 ALT]NAT+ BETWE5 0T[>D0 & 0AWAY FROM0 GOV]NM5T-9DUC$ PRODUCTION DOES NOT AWAIT ! ACTUAL EXPANSION OR CONTRACTION ( ! ECONOMY4 ,! 0MIX$ ECONOMY10 CONTA9+ BO? FRI5DS & FOES ( GOV]NM5TAL CONTROL1 DISPLAYS BO? T5D5CIES SIMULTANE\SLY4 ,9T]NAL POLITICAL /RUGGLES MAY DET]M9E :I* T5D5CY IS EMPHASIZ$4 ,BUT 9 A CRISIS1 ALL CAPITALI/ GOV]NM5TS RESORT TO ECONOMIC CONTROLS TO SAVE !MSELVES & ! SY/EM TO :I* !Y >E COMMITT$4 ,POLITICAL GR\P+S LEA/ CONC]N$ ) PREVAIL+ PROP]TY RELATIONS WILL GO T>DIE/ 9 APPLY+ GOV]NM5T CONTROLS4 ,& ?US IT COMES AB\T1 9 ! 0DEMOCRACIES10 ?AT IS1 ?AT 9 A REAL OR EV5 MANUFACTUR$ 0NATIONAL EM]G5CY10 GOV]NM5TAL P[] WILL (T5 GO TO ?OSE GR\PS READY TO EXT5D GOV]NM5TAL CONTROL4 ,?IS EXPLA9S ! EXI/5CE ( POLITICAL GR\PS ?AT FAVOR 0NATIONAL EM]G5CIES0 AS A VEHICLE LEAD+ TO !IR SUCCESS4 ,BUS9ESS ACTIVITIES RELATE TO ! PRES5T1 NOT TO ! LONG-RUN TR5D T[>DS NATIONALIZATION2 BUT AS ! =M] >E ONLY A P>T ( ! LATT]1 !Y DEFEAT !IR CAUSE BY S]V+ IT4 ,AT ! SAME TIME ?AT CAPITALI/S LIE EVOLV$ :I* UND]M9E ! EXI/+ CAPITAL /RUCTURE EV5 MORE2 ! DEF5SE ( ! /ATUS QUO HA/5S ! SOCIAL TRANS=MATION PROCESS & ! LATT] /R5G!NS ! DESIRE TO /OP ! METAMORPHOSIS ( CAPITALISM-A VICI\S CIRCLE :I* CAN BE BROK5 ONLY BY SOCIAL CATA/ROPHE4 ,! NATIONS ( ! ,EA/]N P[] BLOCK1 :E!R CAPTIVE OR FREE1 SEE 9 !IR [N EXI/5CE ! FUTURE ( ! WORLD ECONOMY4 ,AS PRODUCTS ( REC5T HI/ORY1 !Y DO NOT BELIEVE 9 RE/OR+ PA/ CONDITIONS & P[] RELATIONS4 ,!Y >E 9 ANY CASE DET]M9$ TO DEF5D !IR NEW POSITION 9 ! WORLD ECONOMY1 ?AT IS TO DEF5D ! NEWLY-EVOLV$ RUL+ CLASSES :I* >E BAS$ ON SOME:AT DIFF]5T PROP]TY RELATIONS & *ANG$ IDEOLOGIES :ILE DEF5D+ ! NATION4 ,AS ALL DECISIVE SOCIAL *ANGES FAVOR C]TA9 9T]E/S & SUPPRESS O!RS1 !Y CANNOT CONCEIVE ( A PEACEFUL ABDICATION ( P[] GR\PS4 ,AS !Y SEE IT1 TRANS=M+ A P>TLY-CONTROLL$ SOCIAL SY/EM ( CAPITAL PRODUCTION 9TO TOTALIT>IAN /ATE-CAPITALISM 9VOLVES SOCIAL /RUGGLES & W> & !Y F9D IT NECESS>Y TO PREP>E = W>4 ,?\< NOT 09EVITABLE0-!RE IS NO =CE EXT]NAL TO HUMAN ACTIVITY :I* C\LD UNLEA% IT-W> REMA9S HI$ =1 YET UNDESIR$ RESULT ( REL5TLESS COMPETITION BETWE5 ,EA/ & ,WE/ = ECONOMIC & POLITICAL ADVANTAGES 9 ! WORLD ECONOMY1 ( NATIONAL COMPETITION & COMPETITION = P[] POSITIONS )9 NATIONS4 ,EV5 SO1 W> WILL OCCUR ONLY 9 ! 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SOCIAL & ECONOMIC SY/EMS ( ?OSE C\NTRIES ?AT >E DESCRIB$ POLITICALLY AS ,COMMUNI/4 #a#b4 ,! ,NEW ,YORK ,TIMES1 ,M>* #b#c1 #a#i#e#f4 #a#c4 ,! ,F9ANCIAL ,TIMES1 ,LONDON1 ,DECEMB] #a#i1 #a#i#e#e4 #a#d4 ,H5RY ,GRAYSON1 ,! ,CRISIS ( ! ,MIDDLE ,CLASS1 ,NEW ,YORK1 #a#i#e#e1 P4 #a#f4 #a#e4 ,! ,NEW ,YORK ,TIMES1 ,MAY #g1 #a#i#e#f4 #a#f4 ,! ,POLITICAL ,ECONOMY ( ,AM]ICAN ,=EIGN ,POLICY4 ,! ,WOODR[ ,WILSON ,F\NDATION & ! ,NATIONAL ,PLANN+ ,ASSOCIATION1 ,NEW ,YORK1 #a#i#e#e1 P4 #b#b#d4 #a#g4 ,$W9 ,G4 ,N\RSE1 ,! #a#i#e'S ,COME ,FIR/1 ,NEW ,YORK1 #a#i#e#a1 P4 #a#e#b4 ,FROM 3 ,M>XI/S4ORG4 ,*RONOLOGY 3 ,M>* #b1 #bba 3 ,! ,ECONOMICS ( ,W> & ,PEACE -- ,ADD$4 ,JANU>Y #h1 #bbb 3 ,! ,ECONOMICS ( ,W> & ,PEACE -- ,UPDAT$4 FILE G5]AT$ FROM 3 HTTP3_/_/REVOLTLIB4COM_/